MingZhu Logistics Eyes $13 Million IPO in New York

The transportation company in Guangdong province seeks to become publicly traded on the Nasdaq and use the proceeds to purchase new equipment, as well as improve its software.

Author: Belinda Zhou   

MingZhu Logistics Holdings Ltd. seeks to raise up to $12.8 million in an initial public offering on Wall Street.

The Shenzhen-based transportation company has been offering trucking services and logistics in Guangdong and Xinjiang provinces since 2002. The company said it owns a truckload fleet with 132 tractors and 90 trailers, serving third-party logistics companies, freight forwarders, warehouse operators and other supply chain service providers.

"As a result of our continuous growth, we have become the second largest transportation company in the Guangdong region," MingZhu said in its prospectus.

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(The trucking and delivery services coverage of MingZhu Logistics, Image: F1)

MingZhu reported its revenue in 2018 reached $27.6 million, up 34% year-over-year. The company reported a net loss of $400,000 for the fiscal year 2018, in contrast to net income of $300,000 in 2017. 

MingZhu has applied to trade its shares under the ticker symbol "YGMZ" on the Nasdaq Capital Market. 

ViewTrade Securities Inc. is the sole bookrunner on the deal.

The trucking industry in China grew at the annual growth rate of 1.6% from 2012 to 2017, MingZhu said in its prospectus. By 2021, the company said that it expects the annual growth rate to soar to 2.5%.

MingZhu said it intends to use half of the proceeds from its offering for acquiring new revenue equipment through capital leases, including tractors and trailers. The company said it also wants to invest in a new information system for fleet management.